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  1. 1 Najlepszy E.

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Instability of the Balance of Payments in Countries of East-Central Europe

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Najlepszy E.
Ekonomista
|
2006
|
issue 1
9-26
EN
The developed economies of the European Union are generally characterized by relatively low and safe deficits in current accounts, while countries of East-Central Europe experience difficulties in coping with the ensuing gaps. The operation of market-based stabilization mechanisms is not adequately efficient in economies undergoing transformation. The remedy can be seen in the active government policies which may periodically introduce corrective measures. The success of interventionist policies in safeguarding equilibrium of payment balances and enhancing economic growth depends on the correct definition of the objectives of such policies, i.e. on the formulation of acceptable ceilings for the deficit in the medium term.
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